CHICAGO – An improving economy and availability of debt financing have boosted strategic investment opportunities among electronics manufacturing companies, says an investment advisor.

Contract assemblers completed 10 transactions in the second quarter, down one sequentially and flat with 2010, according to Lincoln International’s quarterly newsletter.

During the period, four companies consolidated, three were vertical / horizontal convergences in Q2 2011, up one relative to the previous quarter. Three transactions involved private equity investments. There were no OEM or EMS divestitures during the quarter.

“The continued high level of EMS consolidations and vertical/horizontal convergences suggests electronics companies remain focused on using available cash to build on their core competencies and expand their overall business portfolio,” said Lincoln International.

Three of the deals took place in North America, five in Europe, one in Asia, and one “cross border.”

Mid tier firms (firms with $300 million to $3 billion in annual revenues) were involved in five of the deals, and smaller firms were involved in four.

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